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In that interview with Gabe Newell on theverge.com a few months back where he talks about the good, better, best hardware tiers he made it pretty clear that Valve's own offering would target the "better" level. Which will have dedicated cpu & gpu, yet with a focus on being small, cool and quiet. Considering the state of drivers I am not at all surprised about them favoring nVidia. There was also definitely talk about taking advantage of the next generation of post-Kepler (Maxwell) gpus at some point, so their intentions to work with nVidia seem pretty clear. Hard to say what card they will settle on for their initial release considering that nVidia and AMD are pushing their new card releases back to the fourth quarter of this year.

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What makes you think that they don't have access to the upcoming Intel HW? (Also every time there is some Valve article there is something like "they invest heavily in FOSS drivers) And nope, Its OK for Source games which is the starting point anyway (1366x768 weakest Intel 4000 and TF2 can run on medium details). Also I own quite a lot of Steam Linux games and they all runs well on the FOSS driver (including SS3). And how exactly are the drivers crappy? MESA 9.1 is pretty good... No crashes, everything is native etc.
Where is the problem then?
There will definitely be more version, what makes you think that the "original one" wont be Intel?

BTW this is Valve time we are talking about, Haswell could be only use in beta version of Steam Box with the real thing being powered by next gen Intel...

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What makes you think that they don't have access to the upcoming Intel HW? (Also every time there is some Valve article there is something like "they invest heavily in FOSS drivers) And nope, Its OK for Source games which is the starting point anyway (1366x768 weakest Intel 4000 and TF2 can run on medium details). Also I own quite a lot of Steam Linux games and they all runs well on the FOSS driver (including SS3). And how exactly are the drivers crappy? MESA 9.1 is pretty good... No crashes, everything is native etc.
Where is the problem then?
There will definitely be more version, what makes you think that the "original one" wont be Intel?

BTW this is Valve time we are talking about, Haswell could be only use in beta version of Steam Box with the real thing being powered by next gen Intel...

The problem is you have to play TF2 on medium details and you don't even play in fullHD.

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What makes you think that they don't have access to the upcoming Intel HW? (Also every time there is some Valve article there is something like "they invest heavily in FOSS drivers) And nope, Its OK for Source games which is the starting point anyway (1366x768 weakest Intel 4000 and TF2 can run on medium details). Also I own quite a lot of Steam Linux games and they all runs well on the FOSS driver (including SS3). And how exactly are the drivers crappy? MESA 9.1 is pretty good... No crashes, everything is native etc.Where is the problem then?
There will definitely be more version, what makes you think that the "original one" wont be Intel?

BTW this is Valve time we are talking about, Haswell could be only use in beta version of Steam Box with the real thing being powered by next gen Intel...

(Emphasis mine)

Try running Crysis 3 on Intel hardware. Intel completely sucks in the GPU department. They are only good for undemanding games like Source games and some indie games. If Valve wants to play in the big league they have no choice but to go with Nvidia(AMD would be a choice if they weren't using Linux).

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By now, Intel graphics is just a tad faster than the XBOX360 graphics. So theoretically it should be OK for games. But then again, since the drivers and the whole graphics stack add too much overhead, maybe not...

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I think the man issue with intel gpu is that some games, including a few humble indie bundle games are incapable of running on intel. Not becuase the gpu isn't powerful enough, but intel is missing some feature that the game is using.... :/

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I think the man issue with intel gpu is that some games, including a few humble indie bundle games are incapable of running on intel. Not becuase the gpu isn't powerful enough, but intel is missing some feature that the game is using.... :/

Can you name one? I would like to try it because until now all the games worked fine (except Torchlight and its famouse "missing face" bug).

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Aren't AMD's GPU's going in to both the next-gen consoles from Sony and MS? If it is, they could probably give a flying McShit about missing out on Steam (as a sales-rep at AMD, I'd still be pissed, but halfway at my own team-Red for not delivering decent linux drivers, whoever's fault that is =). On top of that, the CPU has yet to be confirmed for the console? Intel's gear is looking pretty sweet in the power/price/perforamce arena comparitively but everyone''s talking about it's graphics capabilities. Or lack thereof. I would love to see Intel with decent GPU grunt, but the Haswell's are not going to give me true HD on 120cm's of telly on any selfrespecting game which is all I would play on a SteamBox. get an Ouya for anything else. And AMD's Fusion, with it's superior GPU and inferior CPU (crap drivers or not) doesn't really apply here as SteamBox is going to utilise a discrete GPU anyway.

Still lots of speculation in my head I need cleared up =D

And if AMD is getting the console deals, hopefully they'll then have some cash to spare to get their drivers ramped up properly. Or get bought out by IBM or something.